The objective of financial decision-making of a corporation is to maximize:
A) EBITDA.
B) net income.
C) earnings per share.
D) the value of shareholders' equity.

Question

Quizplus · Accepted Answer

The primary objective of financial decision-making in a corporation is to maximize the value of shareholders' equity. This is because the shareholders are the owners of the corporation, and increasing the value of their equity directly benefits them by increasing the worth of their investment.

The Objective of Financial Decision-Making of a Corporation Is to Maximize